Phreesia, Inc. (NYSE: PHR) has announced a significant financial turnaround for its fiscal third quarter, reporting a return to profitability and robust cash generation. For the quarter ending on October 31, 2025, the healthcare technology company achieved total revenue of $120.3 million, marking a 13 percent increase compared to the same period last year. The company recorded net income of $4.3 million, a notable recovery from a net loss of $14.4 million in the prior year.
The impressive results were bolstered by steady client growth and improved revenue per client. During the quarter, Phreesia averaged 4,520 healthcare services clients, representing a 7 percent increase year over year. Additionally, revenue per client rose by 6 percent, reaching $26,622. According to Chief Executive Officer and Co-Founder Chaim Indig, the company’s strong execution across its operations has led to these substantial improvements in revenue, profitability, and product momentum.
Financial Performance and Strategic Acquisition
Phreesia’s cash flow also exhibited strength, with net cash from operating activities totaling $15.5 million, compared to $5.8 million in the previous year. Free cash flow increased to $8.8 million. By the end of the quarter, the company reported cash and cash equivalents of $106.4 million, a rise of $22.2 million since the beginning of the fiscal year.
In a strategic move to enhance its service offerings, Phreesia finalized its acquisition of AccessOne, a healthcare receivables financing platform, for $160 million. This acquisition aims to strengthen Phreesia’s position in the market by integrating AccessOne’s capabilities with its existing platform. The transaction was financed through a combination of cash and a new $110 million short-term secured loan, which Phreesia intends to refinance with longer-term financing. The company also amended its existing credit facility to facilitate this acquisition.
Management has revised its outlook for fiscal 2026, projecting revenue of $479 million to $481 million and adjusted EBITDA of $99 million to $101 million. This updated forecast includes approximately $7.5 million in revenue from AccessOne through the end of the fiscal year, with client counts expected to reach around 4,515.
Future Projections and Growth Strategies
Looking ahead, Phreesia has provided guidance for fiscal 2027, expecting revenue between $545 million and $559 million, which indicates growth of 14 to 16 percent. The company anticipates adjusted EBITDA ranging from $125 million to $135 million. Phreesia projects continued advancements in operational efficiency, mid-single-digit growth in client counts, and stronger revenue increases per client.
Phreesia emphasized that its current cash position, operating cash flow, and available borrowing capacity are sufficient to support its near-term plans and obligations. This robust financial foundation reflects the company’s confidence as it scales its platform and integrates the newly acquired AccessOne.
As Phreesia continues to expand its influence in the healthcare technology sector, these results and outlook signal a promising trajectory for the company in the coming years.
